Forex: GBP/USD: Momentum should build up as we hold above 1.6200 - Mizuho

By IBT Staff Reporter On 10/29/09 AT 5:18 AM

FXstreet.com (Barcelona) - The Pound is holding quite well in a range which is trending higher, as the pair's peaks reach higher and higher levels, which according to Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, ought to add upside pressure.

The Pound is expected to continue rangebound today, with upside momentum building up as remain above 1.6200 1.6200, says Elliott: Holding above first Fibonacci support and set to test the top of a very thin Ichimoku 'cloud'. Cable is no longer overbought though momentum is zero. Allow for more of the same today noting that the longer we hold above 1.6200 the more upside pressure ought to build.

Resistance levels, according to Elliott, lie at 1.6445, 1.6466 and 1.6500. On the downside, support levels lie at 1.6335, 1.6285, 1.6195.